LONDON, Feb. 11 /PRNewswire/ -- Standard & Poor's today raised its ratings
to 'AAA' from 'A' on the class M and to 'AA' from 'BBB' on the class B
floating-rate notes issued by special-purpose entity Plum Sterling No. 1 PLC.
These rating actions reflect the much-increased credit enhancement for the
class M and B notes, the seasoning of the loan pool, declining absolute values
for arrears, and the servicer's ability to maintain realized losses at a very
low level.
The mortgage pool has paid down to 15.7% of its original balance as of
November 2001, which has resulted in the GBP1,075,000 reserve fund increasing
as a percentage of the outstanding note balance to 17.8% from 2.8% at the
closing date. The class M notes also have the subordinate class B notes as
credit enhancement, and these now represent 27.2% of the outstanding notes.
Losses are under 1% of the initial pool.
The weighted-average loan-to-value ratio is at 71% based on August 1997
valuations. Arguably this would decrease using current valuations, bearing in
mind that more than 25% of the current pool is located in Greater London and
the south-east of England. This suggests that borrowers have accumulated
considerable equity in their properties and further emphasizes the credit
quality of the Plum Sterling No. 1 pool.
The notes issued by Plum Sterling No. 1, formerly known as The Money
Store Sterling No. 1 PLC, are backed by pool of first-ranking mortgages
secured over freehold and leasehold property located in England, Wales, and
Northern Ireland or standard securities over residential property in Scotland,
acquired from The Money Store Ltd.
SOURCE Standard & Poor's
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
Stuart Nelson, London, +44-20-7826-3621, or
Karen Naylor, London, +44-20-7826-3533, both for Standard &
Poor's
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